February 28, 2019 4:24 PM
Ether’s price formed a reversal pattern after a strong rejection near $127.55 against the US dollar. ETH/USD is testing key resistances and could accelerate higher in the near term.
Ether’s price reversed sharply after a strong drop below $130.00 against the US dollar.
A major bearish trendline is formed with resistance at $140.00 on the 2-hour chart of ETH/USD.
ETH/BTC struggled to gain momentum above 0.0362BTC and declined below 0.0360BTC.
Technically, the 2-hour chart indicators are consolidating below midlines in the bearish territory.
Ether Price Analysis (ETH)
After another rejection near the $140.00 resistance, ETH/USD declined sharply below the $136.00 and $130.00 support levels. However, the decline failed and the pair reversed most losses after trading as low as $127.55.
ETH/BTC also followed a similar structure and declined sharply after it failed to break the 0.0362BTC resistance. However, the 0.0340BTC level acted as a support and the pair rebounded nicely above 0.0350BTC and 0.0355BTC.
Let’s look at the 2-hour chart to understand the recent drop in ETH/USD. The pair fell significantly below the $136.00 and $134.00 support levels. However, it turned out to be a false break as Ether bounced back after filling stop orders.
There was a rejection candle formed with a long wick and small body from the $127.55 low. The price moved back above $136.00 and it is currently consolidating. On the upside, there is a strong resistance formed near $139.00 and a major bearish trendline, with resistance at $140.00 on the same chart.
Should Ether break the $140.00 resistance, it could start a solid upward move toward the $142.00 and $145.00 resistance levels. On the downside, the main support is at $134.00, below which the price might decline to $130.00.
Moving down to the 30-minute chart of ETH/USD, the pair clearly bounced back hard after setting a new weekly low at $127.55. It is currently trading in a range above the $135.40 support with resistance at $138.00.
Overall, the current price action is suggesting an upside break in ETH as long as the price is trading above the $134.00 support level.
The MACD is currently flat in the bullish zone.
The RSI recovered nicely and is currently near the 45 level.
Important Support Levels
$134.00 and $132.00
Important Resistance Levels
$139.00 and $140.00
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis. He strives to provide entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession and loves blogging.
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